Vacation Rental Regulations Still Up in the Air in Evanston

Whether the city of Evanston will license or prohibit vacation rentals on Craigslist and Airbnb remains unsettled following consideration of two proposed regulatory ordinances by the planning and development committee Monday night. 

The committee discussed two ordinances drafted by Evanston’s law department. One ordinance would prohibit vacation rentals entirely, with an exception for professors on sabbatical, among other exemptions, while the other ordinance that would allow vacation rentals with a license, also with some exceptions. Both ordinances defined vacation rentals as renting an entire dwelling unit or portion of that unit for less than 30 consecutive days to someone who is not a member of the owner's family.

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Many city council members and several residents who spoke at the meeting criticized the proposed ordinances, arguing that neither one met the needs of the community.

“We have not solved this problem at all,” said Ald. Melissa Wynne (3rd Ward). “There are terrible inconsistencies in both these ordinances.” 

Members of the committee voted to send the ordinances back to the city’s law department for a new draft of proposed regulations, to be taken up again at a future meeting of the planning and development committee. 

Neighbors Cite One Home as Major Problem 

The issue of short-term rentals came to the city’s attention in part because of a group of concerned Evanston homeowners, who started a petition asking city officials to take action. As of press time, there were 127 signatures on the petition, which argues that existing city laws already prohibit vacation rentals, and should be enforced. 

Many of the people who signed the petition live near a home in the 2500 block of Ashland Avenue that has been advertised repeatedly on Craigslist and on Airbnb. Speaking at the meeting, neighbors said they had seen a stream of people going in and out of the home, and were concerned that it would reduce their property values and create an unsafe atmosphere for children in the neighborhood. 

“Many of the Ashland neighbors have lost count of the people entering and leaving the home with pillows and luggage,” said neighbor Maureen O’Donnell. “The language in their advertisement has assured renters there will be plenty of coolers in the home for whatever they would like to drink. The only rule seems to be, and I quote, ‘not to engage in any hair-pulling fights.’” 

Mark Rosati, who also lives near the home on Ashland, said he was concerned about its proximity to a school and the possibility of something happening to one of the children in the neighborhood, given the lack of vetting required for vacation rentals.

“With all due respect, I don’t quite have a lot of confidence in Facebook and Google as security checks,” he said. 

Rosati also noted that when he purchased his home in the city’s most residential zoning district, R-1, he did not expect the possibility of vacation rentals next door—and that it was a potential deterrent to future buyers.

“I cannot understand why the city would willfully erode its property values and tax base,” he said. “As someone who bought his home in an R-1, I would certainly feel the victim of a bait and switch.” 

David Berg, who also lives near the home for rent on Ashland Avenue, said he grew up in Decatur, near the historic mansion of former Illinois Gov. Richard Oglesby. In an area full of historic homes like that one, he said he believed vacation rentals had contributed to the city’s decline. 

“If you’ve seen Decatur, it’s like the inner cities of Bloomington, Normal, Rockford,” he said. “They finally had to pass laws in Decatur that said you cannot rent out homes in single-family home communities, because it was just taking the neighborhoods down.” 

Airbnb Operators Defend The Practice 

Several people who rent their homes on Airbnb and Craigslist spoke up at the meeting, arguing that vacation rentals allowed them to pay their mortgages and stay in their homes, and also brought tourism dollars to the community.

Timothy and Susan Schell, who have rented out their home on Hinman Avenue for the past year, said the experience had been very positive.

“The guests that we’ve had since last year have been from all over the world,” Timothy Schell said. “They typically eat at our local restaurants or they shop at Jewel, Whole Foods.” 

Because he and his wife live in their home along with their guests, he noted that they have a vested interest in neighborhood safety and vetting their occupants. 

Olufemi Davies, who lives on Dobson Street, said she supports a city license for vacation rentals, which help her pay her mortgage. She suggested that the city should be able to pull a license if there were complaints, but said prohibiting vacation rentals entirely would be a fool’s errand. 

“They could ban cell phones. They could ban the internet,” she said. “You can’t forbid it, you have to regulate it.” 

Attorney and Evanston resident Jeff Smith argued that the ability to rent out a home was part of what homeowners were buying when they purchased a property in Evanston. 

“I bought a single family home in an R-1 neighborhood and I’m entitled to that benefit,” he said. “Part of what I bought is the right to live in my house and part of what I bought is the right to rent out my property.” 

Smith noted that he had not heard of any citations or arrests resulting from people listing their homes on Airbnb, Craigslist, vrbo or any of the other vacation rental sites available.

“Fear mongering might be a harsh word, but I’m hearing mainly the fear of what might happen rather than what has happened,” he said. 

Aldermen Displeased With Proposed Ordinances 

Several aldermen said they were unhappy with the ordinances as proposed. Ald. Ann Rainey (8th Ward), said she believed the ordinances should apply not just to the most residential R-1 district, but to all districts in the city. She also said professors should not be the only exempted class allowed to rent out their homes. 

“I don’t see any need to be exclusive or elitist about this ordinance,” she said. 

Ald. Melissa Wynne (3rd Ward) said she agreed with the residents who argued that the city should enforce the laws already on its books relating to bed and breakfasts, lodging houses and home occupations. 

“We’re just bollixing this up more and more,” she said. “What I’m hearing is that we have unlicensed B&Bs in Evanston, and they need to get licensed.”

Like Wynne, Ald. Don Wilson (4th Ward) said the city should look to its existing ordinances. He suggested that the law department draft an extension of the existing bed and breakfast ordinance to cover vacation rentals. 

But city attorney Grant Farrar said the law department was trying to follow the example of other municipalities like Chicago and New York, which created ordinances defining vacation rentals and outlining an enforcement scheme. In contrast to a vacation rental, a bed and breakfast by nature includes a meal served on the premises, he noted. 

“This enforcement issue is something that’s very difficult to parse out and get a comprehensive, clear theme in place for,” he said. 

To meet the immediate concerns of residents on Ashland, Ald. Rainey asked for a member of the city staff to meet with the owner of the home listed on vacation rental sites. 

“It seems to me that first we have to find out what’s going on,” she said.